You Don’t Need $150K to Build Wealth: 3 Investing Steps Gen Z Can Take on Any Income
Written by
Emily Fowler
Edited by
Zuri Anderson
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Investing can feel out of reach for anyone without a big salary, but Gen Z is keen to get involved and show that early investing habits matter more than a six-figure income.
A study from J.P. Morgan Chase found that in 2015, only 6% of 25-year-olds had investment accounts. By 2024, that number had grown to 37%, showing younger adults these days are prioritizing financial independence and long-term growth. Research from John Stevenson reinforces this, sharing that 32% of Gen Zers expect to be saving for retirement or investing by the time they’re 30.
To find out more about Gen Z and investing, GOBankingRates spoke with two financial experts about smart first steps.
Make an Early Start
“Starting” may seem obvious, but for many, the hardest part of investing is taking that first step. While saving is an important part of building wealth, it doesn’t come with the potential for higher returns that investing does.
“I’ve seen countless instances where people start saving but never knew they needed to invest the funds,” said Adam Vega, a wealth advisor at Avance Private Wealth.
One of the simplest ways to make a start is through low-cost index funds or ETFs. They’re popular for a reason, offering diversification across hundreds of companies and a track record of delivering steady, long-term results without the need to pick individual stocks.
Take Advantage of Tax-Advantaged Accounts
Investing through accounts with tax benefits can make money grow faster. Contributions can be put into stocks, bonds or ETFs, letting compounding work over time.
Chad Gammon, a financial advisor and founder of Custom Fit Financial, explained that automation makes it easier to grow contributions.
“Many automation tools allow for yearly increases,” he said. “This could be in your employer’s 401(k) account, an IRA or even a brokerage account.”
Starting small and letting contributions rise gradually keeps investing consistent without adding extra stress.
Pay Down Debt To Boost Investing Power
It’s smart to use any extra money to pay off high-interest debt rather than putting it all in investment accounts. The money saved on interest will mean more money to invest later.
“It’s nearly impossible to invest and save if you have high-interest debt, as the debt increases faster than your savings and investments,” said Gammon.
Paying down credit cards, personal loans or other costly debt first ensures future contributions to retirement accounts or brokerage investments have more impact.
Investing Is a Journey
Investing is a long-term journey, and it’s normal for life to throw curveballs. Staying flexible allows for adjustments without losing sight of long-term goals, according to Vega: “It’s OK to have to make adjustments as you go.”
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